Three Korean brokerage firms have bought a hotel in Vienna, Austria, for 370 million euros ($414 million), according to industry sources on Aug. 13.
Seoul-based real estate-focused Mastern Investment Management, acting on behalf of Meritz Securities, Hana Financial Investment and NH Investment and Securities, acquired Hilton Vienna, located in Austria’s capital city, in a joint venture with Wealthcore Investment, an asset management firm in based in Munich and Vienna. The three brokerages funded about $164 million while other local financial institutions financed the remainder. The investment is expected to yield an annual return of 6 percent, the sources said.
“With the acquisition of this landmark property we have been able to secure for us and the Korean investors a solid and high quality investment -- and this in a highly competitive market,” Christoph Wendl, Managing Partner of WealthCore Investment Management, said in a statement on Aug. 12.
“The property offers our Korean investors an attractive opportunity for a long-term investment in the heart of Vienna,” he added.
Hilton Vienna, a property spread over 50,000 square meters with 660 rooms, is a five-star hotel located right across Am Stadtpark, Vienna’s major public park. The hotel was under management by Hilton Hotels and Resorts for 40 years. Last year, the US hotel giant signed a master-lease agreement for 20 years.
By Park Ga-young (firstname.lastname@example.org)